Michael Saylor, the executive chairman of MicroStrategy, advocates for large corporations to integrate Bitcoin (BTC) into their treasury management practices.
In a recent episode of the “Markets with Madison” podcast, Saylor proposed that rather than engaging in stock buybacks, companies could enhance their market value and shield their assets from inflation by investing in Bitcoin.
Transformative Investment Strategy
Using Apple as a case study, Saylor suggested that if the tech giant redirected $100 billion into Bitcoin investment instead of stock repurchases, this could potentially add $1 to $2 trillion to its market capitalization over time.
Saylor stated:
“If Apple bought $100 billion of Bitcoin, it would likely grow to $500 billion, and the company would have a $500 billion business growing at 20% a year.”
He envisions a significant shift in Apple’s valuation, with 40% resulting from Bitcoin holdings, while the remaining 60% stems from its traditional operations.
The Future of Capital Markets
Saylor’s advocacy for Bitcoin is based on his firm belief in its potential to revolutionize capital markets and serve as a superior store of value compared to conventional cash reserves. He pointed out:
“Bitcoin’s long-term value is undeniable.”
With inflation and currency devaluation presenting ongoing challenges for companies, Saylor emphasized that Bitcoin can serve as a resilient and appreciating asset for safeguarding balance sheets. He predicts that Bitcoin could reach a staggering $13 million per coin within the next 21 years, urging companies to leverage the opportunities presented by this “capital revolution.”
Innovative BTC Yield Strategy
Saylor has successfully applied this investment strategy within MicroStrategy, which now holds 252,220 BTC valued at over $16 billion, distinguishing it as the largest corporate entity in the crypto space.
The company has initiated the issuance of Bitcoin-backed securities to support its acquisition efforts, creating a “BTC yield” — a groundbreaking performance metric that has contributed to an 18% increase in Bitcoin value per share for its investors this year.
MicroStrategy’s BTC yield model includes issuing equity and convertible bonds at a premium and reinvesting the proceeds into Bitcoin purchases, fostering significant growth in their Bitcoin holdings while delivering superior returns to shareholders compared to traditional methods.
Saylor remarked:
“In one year, we’ve generated more value from issuing Bitcoin-backed securities than we could have in a decade of traditional operations. BTC yield allows us to compress time and deliver results faster.”
According to Saylor, if companies like Apple embrace this strategy, they can unlock new growth opportunities by using their cash reserves proactively to acquire Bitcoin, ensuring remarkable gains over time while reducing exposure to inflationary pressures.
